Correlation Between JPMorgan Chase and Comerica
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Comerica at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JPMorgan Chase and Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Comerica, you can compare the effects of market volatilities on JPMorgan Chase and Comerica and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JPMorgan Chase with a short position of Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Comerica.
Diversification Opportunities for JPMorgan Chase and Comerica
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Comerica is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica and JPMorgan Chase is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JPMorgan Chase Co are associated (or correlated) with Comerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Comerica go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Comerica
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.67 times more return on investment than Comerica. However, JPMorgan Chase Co is 1.49 times less risky than Comerica. It trades about 0.06 of its potential returns per unit of risk. Comerica is currently generating about -0.17 per unit of risk. If you would invest 23,956 in JPMorgan Chase Co on September 13, 2024 and sell it today you would earn a total of 278.00 from holding JPMorgan Chase Co or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Comerica
Performance |
| Timeline |
| JPMorgan Chase |
| Comerica |
JPMorgan Chase and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Comerica
The main advantage of trading using opposite JPMorgan Chase and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Comerica can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Comerica will offset losses from the drop in Comerica's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Canadian Imperial Bank |
| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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